What Does A Timeshare Really Cost Over Time?
Your investment plus leisure combo is a myth!
Well, not really. It is a good investment but with some recurring expenses. For those expenses, sometimes people get afraid of investing in them. But, you can get benefitted from timeshare if you have a clear idea about the total expenses related to it.
With years of experience related to timeshare and analyzing its pros and cons, our experts have explained a timeshare’s actual cost that a buyer has to face over time.
- Initial Buying Cost
A timeshare is generally a part of premium property. So, its initial buying cost will be hefty. And, even after paying that amount, you are not getting the ownership of the property. You are just getting the authorization to access one part of the property for a certain period every year. And, for that, you are paying a minimum amount of $5000-10000. So, it is going to be taking a big scoop from your savings.
- Popular 10 Year Financing Terms
In many cases, people are short of funds to buy a timeshare so, they opt for financing it. But, that financing brings them another great headache in the form of high interest rates. The 10-year timeshare financing loans generally come with an average interest of 14 percent and it can go up to 20 percent in some cases. So, for example, if you finance a $25000 timeshare at a rate of 14 percent interest for 10 years, you will get stuck with paying around $4000 per year for a long decade. And, for a 20 percent interest rate, your yearly drainage of money will become much more.
This financing scenario can become one of the greatest devastations of the funds that you have planned for your better future. So, if you plan for getting a timeshare through financing, you should stay ready for a lump sum of financial drainage.
- Massive Maintenance Fees
A property certainly needs maintenance but you are ready to pay a reasonable amount for proper maintenance of your timeshare that you can use to enjoy a pleasant vacation every year. But, if that maintenance fee keeps rising exponentially every year, then it becomes very tough for you to afford that. And, in most of the tricky timeshares, the maintenance fee increases every year at a rate beyond the buyer’s imagination.
In 2017, a timeshare had average maintenance fees of around $980 for people having access for a week. That means one single unit of a resort used to earn approx $50,960 per year as it can have 52 timeshare owners for one year. However, here we are observing the maintenance rates of 2017 and the rates have grown a lot in these years. So, those huge maintenance fees that are tremendously increasing every year will be going to be a terrible financial nightmare for you if you get trapped by the alluring trick of a timeshare salesperson.
- Cost Over Improvements
Even after you get rid of all those loan payments and keep paying the huge maintenance fees, you will have to pay some price in the name of improvements in amenities. But, you will hardly see any improvement in the amenities there.
So, considering all these expenses, you will mostly see that your timeshare becomes more expensive than other forms of accommodations. We at Easy Timeshare Relief always help our clients exit their timeshares. To know more and to avail of our services, feel free to contact us. Also, visit our blog page for more information about timeshares.